Live Insurance News

Consumer group may have uncovered an auto insurance pricing scheme

December 24, 2014December 22, 2014 S.Vagus

Advocacy groups claims to have found information regarding a pricing scheme within the auto insurance sector The Consumer Federation of America, a prominent consumer advocacy group, has raised the alarm on what it believes to be a pricing scheme in the auto insurance sector. The organization suggests that insurers are employing a practice called “price optimization” to drive up insurance premiums for drivers. The Consumer Federation of America claims to have uncovered this practice when investigating rate filings from some of the country’s largest auto insurance companies. Insurers may be…

Auto insurance is too expensive for low income drivers, study

October 7, 2014October 7, 2014 H. Cutner

Research conducted by the Consumer Federation of America has shown that this coverage is tough to afford. A recent report has been issued by the Consumer Federation of America (CFA), which reveals that the vast majority of Americans (76 percent), feel that minimum liability auto insurance coverage for under $500 per year is a fair amount to pay, and 40 percent believe that drivers should have to pay an amount under $250 per year. That said, the five largest vehicle insurance companies in the United States do not offer that…

Report highlights growth of auto insurance rates in the US

November 20, 2013November 19, 2013 Logan B.

Auto insurance rates have been on the rise for the past 25 years The Consumer Federation of America has released a new study highlighting auto insurance rates throughout the U.S. According to the study, auto insurance rates have been on the rise for the past 25 years. The only state that has shown any significant average decrease in these rates has been California. As auto insurance rates continue to rise throughout the country, coverage may be getting too expensive for some drivers to afford. This could lead to many people…

Auto insurance rate calculation factors may harm lower earners

July 25, 2013July 23, 2013 Julie Campbell

Americans whose incomes aren’t as high are being viewed unfavorably by many vehicle insurers. A number of large auto insurance companies in the United States are still using a driver’s education level and occupation as factors that are used in the calculations of his or her rates. A recent report is suggesting that this practice is pricing out earners in the low and moderate income brackets. The Consumer Federation of America has now released a report that has looked into the impact of the behaviors of auto insurance providers when…

Auto insurance fairness questioned by Consumer Federation of America

February 1, 2013April 30, 2013

The CFA performed research on premiums calculations which revealed unexpected results. The Consumer Federation of America (CFA) has used the profiles of two hypothetical drivers in order to receive quotes for auto insurance coverage from a number of different insurers, only to discover that the prices they were issued were not at all what they had expected. The two profiles involved female drivers who were 30 years old and who had the same road experience. These two profiles also lived within the same ZIP code and were seeking to receive…

Auto insurance rates may be higher for safe drivers

January 31, 2013April 13, 2014 H. Cutner

Safe drivers may be facing significantly higher auto insurance rates There are many factors that go into determine auto insurance rates. Driving history, place of residence, credit score, and age can all be used to determine the price of a policy for a particular individual. Those with good driving records, typically known as safe drivers, are often considered to be charged the absolute lowest auto insurance rates possible. This is not the case, according to the Consumer Federation of America. The consumer advocacy group has released a new study that…

Auto insurance takes many non-driving factors into account when calculating premiums

October 7, 2012October 6, 2012 Julie Campbell

Rates are determined by many things, not all of which occur behind the wheel. Auto insurance companies take many different factors into account when they calculate the premiums that will be paid every month by their policyholders, but not all of them have to do with driving. There are many additional elements such as occupation, education, and ZIP codes that can also be included. A consumer group is now taking action against some of these behaviors by asking New York insurance commissioners to limit the ability of insures to apply…